XRP is making waves once again as Ripple’s recent $1.25 billion acquisition and a favorable resolution in its dispute with the SEC create momentum for a potential breakout in Q2 2025.
Ripple has entered Q2 2025 on a powerful note, following a major regulatory and strategic win. Most notably, the long-standing legal battle between Ripple and the SEC reached an unexpected conclusion. The SEC officially withdrew its appeal while also reducing Ripple’s penalty from $125 million to $50 million. Importantly, the agency is now also seeking to have the injunction against Ripple fully lifted.
This development marks a turning point, not only for Ripple but for the broader crypto industry. It coincides with a shift in U.S. policy as the current administration begins to relax crypto-related regulations, encouraging deeper institutional involvement in digital assets.
Adding another layer of strength to Ripple’s position is its latest strategic move: the acquisition of Hidden Road, a major global prime brokerage firm. This $1.25 billion deal will integrate RLUSD into comprehensive institutional post-trade frameworks and significantly expand XRP’s role across forex and swap markets.
While the overall sentiment around XRP is bullish, certain metrics reveal shifts in on-chain activity. Following a peak in 2024, network engagement has seen some cooling. Transaction volumes and the rate of new wallet creation have dipped by 30% to 40%. However, XRP’s participation in decentralized finance (DeFi) has remained relatively stable and resilient compared to many other assets.
For example, trading volume on decentralized exchanges dropped by only 16%, a smaller decline than what’s been observed across many competing crypto platforms. Additionally, Ripple’s stablecoin, RLUSD, is steadily increasing in adoption with a current market cap of $90 million and $300 million in total on-chain trade volume.
Ripple’s internal XRP reserves currently stand at 4.56 billion tokens, while 37.13 billion XRP remain locked in escrow contracts, maintaining controlled circulation and reducing sell-offs.
The XRP/USD currency pair is currently hovering around $2.10, respecting an ascending trendline formed in early April. Traders are closely monitoring the $2.1497 resistance level as a key breakout threshold. Should XRP convincingly move above this figure, it could rally toward the next significant marker at $2.2195. In contrast, if it fails to breach that resistance, downside support levels lie at $2.0794, $2.0338, and $1.9857 respectively.
Technical indicators remain mixed. The 50-period EMA is showing a slight downward trend at $2.1827, and XRP is currently trading just below that line, signaling some hesitation in upward momentum. There is currently no 200-period EMA under observation, so analysts are placing more emphasis on short-term signals and trendline responses.
Despite this short-term technical uncertainty, Ripple’s comprehensive win—including a significant financial acquisition, greater institutional integration, and an end to its battle with federal regulators—places it in a strong position to maintain XRP’s upward momentum. This aligns with growing confidence in Ripple’s broader ecosystem and the increasing utility of its token across traditional and decentralized financial systems.
As the second quarter progresses, all eyes remain fixated on the pivotal $2.15 level. Whether a breakout occurs above this line or XRP experiences a retracement, the asset’s sharply improving fundamentals are setting the tone for a high-stakes trading environment.
Focus keyword: XRP
Related keywords: Ripple, crypto regulation, RLUSD, decentralized finance
